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Interest rates 'may hit 8pc' in two years

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Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Really. They pay 6% interest.

    Many people are making a profit as their interest rates are lower, therefore getting their capital paid also.

    They also get to keep any increase in their asset that they are not paying the interest on, as the taxpayer is paying it for them.

    We also have the mortgage rescue scheme that's played a part.

    VERY different to housing benefit. Seriously, you are flogging a dead horse with this one.

    My farther was made unemployed last year,
    1) he was not getting 6% IO payments. (I think it was about 4%
    2) he had all the HB removed from is pension credit (64)

    So in reality he was worse off when on HB as they could have been paying less of if just paying the interest on his pension.

    Got any links to this 6% that pays off capital but does not affect your other benefits.

    But even if it was is that the owners fault or the systems? are they demanding this to be paid off?
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    edited 22 August 2010 at 9:15PM
    ILW wrote: »
    Just because it hasn't happened before doesn't mean it cannot.

    You name me a time when BoE rate has been less than 1% for any period of time.

    2008- now. Last time it was near was when we had a massive budget deficit also. Just after the second world war.


    it never got over 5% betwen 1930 - 1955 25 years in total. As you see massive deficits are not very inflationary.
  • ILW
    ILW Posts: 18,333 Forumite
    Really2 wrote: »
    2008- now.

    Correct, it has never happened before.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Really2 wrote: »

    Got any links to this 6% that pays off capital but does not affect your other benefits.

    I wasn't even involving benefits, and neiter were you, and neither was Hamish in the first instance.

    Got no links, can't be bothered to find them, it's 6%. Being reduced to 3.5% soon.
    But even if it was is that the owners fault or the systems? are they demanding this to be paid off?
    This has absolutely nothing to do with anything we were talking about. I have never blamed owners. Simply responded to Hamish's point. You are trying to put spin on what I said to take it down a completely different route now.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    Correct, it has never happened before.

    How about this bit?
    Really2 wrote: »
    Last time it was near was when we had a massive budget deficit also. Just after the second world war.


    it never got over 5% betwen 1930 - 1955 25 years in total. As you see massive deficits are not very inflationary.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Really2 wrote: »
    How about this bit?

    We had secure, affordable arrangements with the US regarding our second world war debt. We finished paying it off not long ago.

    Completely different again.
  • sjaypink
    sjaypink Posts: 6,740 Forumite
    Really2 wrote: »
    My farther was made unemployed last year,
    1) he was not getting 6% IO payments. (I think it was about 4%
    2) he had all the HB removed from is pension credit (64)

    So in reality he was worse off when on HB as they could have been paying less of if just paying the interest on his pension.

    Got any links to this 6% that pays off capital but does not affect your other benefits.

    But even if it was is that the owners fault or the systems? are they demanding this to be paid off?
    What is 'HB'?

    How SMI is calculated

    The standard interest rate used to calculate SMI is currently 6.08 per cent.
    From 1 October 2010 the standard interest rate will be set at a level equal to the Bank of England’s published monthly average mortgage interest rate. This is currently 3.65 per cent. The rate that will apply from 1 October 2010 will be published by the Bank of England at the end of August.
    We cannot change anything unless we accept it. Condemnation does not liberate, it oppresses. Carl Jung

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    This has absolutely nothing to do with anything we were talking about.

    Sorry, you singled out owners as getting tax payers help on houses they could not afford to keep repayments up on.
    I was pointing out it is not only them, renters also get the same type of help to keep a roof over their head.
  • been there done that I remember when the rate was 15% and that was with a ConTory government so no surprise there - As usual the rich will get richer and the poor will get poorer
    Blessed are the cracked for they are the ones that let in the light
    C.R.A.P R.O.L.L.Z. Member #35 Butterfly Brain + OH - Foraging Fixers
    Not Buying it 2015!
  • Bob_the_Saver
    Bob_the_Saver Posts: 5,610 Forumite
    Most people in the UK just haven't get it yet. They were told that UK LTD would be a 'Knowledge based economy' ie. Johnny Foreigner is not as clever as we are. They are not only more clever in many cases but much more dedicated and will work for much lower wages.
    Until people in the UK stop thinking that high wages are their 'right' for doing da*n all (in many cases) and stop regarding spending money in the shops as a necessary activity they will just drift further in to cloud cuckoo land.
    The UK not only has to start making things but a major change in mind set is required. Go to Vietnam and China (Not India -yet) and see what work is all about. You can't carry on selling insurance & loans to one another, after a while the money just runs out - actually it just did.
    Forget party politics and get some work done.
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